Federal Government Indigenous Procurement Policy changes - Joint Ventures

The Federal Government has announced changes to the Indigenous Procurement Policy (IPP) to strengthen registration requirements of joint venture arrangements.

With the rapid growth of the Indigenous business sector through opportunities created through public policy and commitment of the Corporate sector there has been a proliferation of Joint Ventures being established between Indigenous and non-Indigenous partners.

The spotlight on Indigenous ownership in business and black cladding has been steadily growing within Aboriginal and Torres Strait Islander businesses and communities, Government and the Corporate sector. Black cladding is the unethical practice of non-Indigenous businesses passing themselves off as Indigenous businesses in order to benefit from Indigenous policies and programs. Read Andrew Burrell’s, ‘Beware ‘black cladding’ as indigenous vie for business’ article in The Australian (9 November 2015).

The Federal Government have announced from 1 January 2019, incorporated Indigenous joint ventures must register with Supply Nation and be at least 50% Indigenous owned and demonstrate 50% Indigenous involvement in the management and control of the joint venture.

In addition to the new requirements, the Joint Venture must also have in place:

  • a strategy to build the capability and skills of the Indigenous business partner and;

  • an Indigenous workforce strategy.

Supply Nation have developed templates in partnership with the Department of Prime Minister and Cabinet. Refer to “Changes to the Indigenous Procurement Policy Joint Venture registration” detailed on the Supply Nation website.

Further recommended Joint Venture Reference Material

Terri Janke and Company worked with Indigenous Business Australia to write the Indigenous Joint Venture - Information guide, which we encourage you to read.

If you require legal advice about a matter, seek advice from a lawyer. The information guide only provides general information.

Tagai Management Consultants is a dynamic management consultancy specialising in Procurement, Community Development, and Business advisory services focused on empowering relationships and achieving results that meet and exceed our clients requirements in Australia and the Asia/Pacific region.  Get in contact with us today.